Tenet Healthcare (NYSE:THC – Get Free Report) and Viemed Healthcare (NASDAQ:VMD – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.
Volatility and Risk
Tenet Healthcare has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Viemed Healthcare has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.
Profitability
This table compares Tenet Healthcare and Viemed Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tenet Healthcare | 10.27% | 26.76% | 5.55% |
| Viemed Healthcare | 4.81% | 10.16% | 7.22% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tenet Healthcare | 0 | 1 | 18 | 1 | 3.00 |
| Viemed Healthcare | 0 | 3 | 1 | 0 | 2.25 |
Tenet Healthcare presently has a consensus price target of $277.89, indicating a potential upside of 5.23%. Viemed Healthcare has a consensus price target of $14.00, indicating a potential upside of 55.47%. Given Viemed Healthcare’s higher possible upside, analysts plainly believe Viemed Healthcare is more favorable than Tenet Healthcare.
Earnings and Valuation
This table compares Tenet Healthcare and Viemed Healthcare”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tenet Healthcare | $21.31 billion | 1.00 | $1.41 billion | $25.93 | 10.18 |
| Viemed Healthcare | $270.28 million | 1.27 | $14.93 million | $0.36 | 25.01 |
Tenet Healthcare has higher revenue and earnings than Viemed Healthcare. Tenet Healthcare is trading at a lower price-to-earnings ratio than Viemed Healthcare, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.4% of Tenet Healthcare shares are owned by institutional investors. Comparatively, 74.2% of Viemed Healthcare shares are owned by institutional investors. 1.0% of Tenet Healthcare shares are owned by company insiders. Comparatively, 20.6% of Viemed Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Tenet Healthcare beats Viemed Healthcare on 10 of the 15 factors compared between the two stocks.
About Tenet Healthcare
Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.
About Viemed Healthcare
Viemed Healthcare, Inc., together with its subsidiaries, provides home medical equipment (HME) and post-acute respiratory healthcare services to patients in the United States. It provides respiratory disease management solutions, including treatment of chronic obstructive pulmonary disease (COPD), which include non-invasive ventilation, percussion vests, and other therapies; and invasive and non-invasive ventilation and related equipment and supplies to patients suffering from COPD. The company leases non-invasive and invasive ventilators, positive airway pressure machines (PAP), durable medical equipment, percussion vests, oxygen concentrators, and other medical equipment; and sells and rents HME devices. In addition, it provides neuromuscular care and oxygen therapy services; and sleep apnea management provides sleep solutions and/or equipment, such as PAP, automatic continuous positive airway pressure, and bi-level positive airway pressure machines. Further, the company offers in home sleep apnea testing services, as well as healthcare staffing and recruitment services. Viemed Healthcare, Inc. was founded in 2006 and is headquartered in Lafayette, Louisiana.
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